Voltalia (VLTSA) AI Stock Analysis

• Market Cap: €990.88M
• Dividend Yield: N/A
• Average Volume (3M): 105.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 1.76%
• EPS Growth: -234.79%
• Country: FR
• Employees: 2,030
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): -0.21
• Shares Outstanding: 131,318,710
• 10 Day Avg. Volume: 83,079
• 30 Day Avg. Volume: 105,108
• PEG Ratio: 0.25
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.71
• P/FCF Ratio: -2.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €8.50
• Price Target Upside: 16.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: €8.00 ▲(9.59% Upside)

Voltalia's overall score is impacted by its strong revenue growth and strategic plans for future profitability. However, current profitability challenges, high leverage, and negative free cash flow are significant concerns. Technical indicators suggest neutral to weak momentum, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Revenue Growth

Voltalia's consistent revenue growth, supported by an 8% increase in turnover, indicates strong market demand and effective sales strategies, which are crucial for long-term business sustainability and expansion.

Strategic Transformation Plan

The SPRING plan focuses on self-financed growth and profitability, enhancing Voltalia's operational efficiency and market position, supporting sustainable long-term growth and resilience in the renewable energy sector.

Cash Position

A strong cash position provides Voltalia with financial flexibility to invest in growth opportunities, manage debt, and withstand economic fluctuations, ensuring long-term stability and operational continuity.

Negative Factors

Profitability Pressure

Ongoing profitability challenges, highlighted by a significant loss, indicate operational inefficiencies and financial strain, which could hinder Voltalia's ability to sustain growth and invest in future projects.

High Leverage

High leverage increases financial risk and limits Voltalia's flexibility to respond to market changes, potentially impacting its ability to finance new projects and maintain competitive positioning.

Curtailment Challenges

Curtailment issues reduce operational efficiency and revenue potential, posing a significant challenge to Voltalia's ability to optimize energy production and profitability, impacting long-term business performance.

Voltalia Business Overview & Revenue Model

Company Description

Voltalia (VLTSA) is a French renewable energy company that specializes in the development, construction, and operation of power generation plants powered by renewable sources, including solar, wind, hydroelectric, and biomass. The company operates in multiple countries and is focused on providing sustainable energy solutions while contributing to the global transition towards cleaner energy. Voltalia also offers services related to energy efficiency and the management of energy resources.

How the Company Makes Money

Voltalia generates revenue primarily through the sale of electricity produced from its renewable energy assets. The company operates on a model that includes long-term power purchase agreements (PPAs) with utilities and corporate clients, providing predictable cash flows. Additionally, Voltalia earns income from the sale of renewable energy certificates and credits. The company also engages in the construction of renewable energy projects for third parties, which further diversifies its revenue streams. Strategic partnerships with governments and other organizations in various countries enhance Voltalia's ability to expand its operations and secure funding for new projects, thereby contributing to its earnings.

Voltalia Financial Statement Overview

Summary

Voltalia demonstrates strong revenue growth and operational efficiency, but faces significant profitability challenges with recurring net losses. High leverage and negative free cash flow pose financial sustainability risks.

Income Statement

Voltalia has shown a consistent increase in revenue over the years, with a notable growth rate from 2019 to 2024. However, the company struggles with profitability, as evidenced by negative net income in several years, including the most recent period. Despite this, the gross profit and EBITDA margins are relatively strong, indicating operational efficiency. The decline in EBIT margin in 2024 suggests increased operational costs impacting profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. The equity ratio has declined over the years, suggesting increased reliance on debt financing. However, the company's assets have grown, supporting its expansion. The return on equity is weak due to negative net income, which impacts the overall financial health.

Cash Flow

Voltalia's cash flow statements highlight challenges in generating positive free cash flow, as seen in persistent negative free cash flow figures. Although operating cash flow improved in the latest period, the high capital expenditures create a drag on free cash flow. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	554.68M	547.00M	495.18M	465.94M	358.67M	233.46M
Gross Profit	358.22M	490.00M	424.18M	96.59M	78.77M	85.20M
EBITDA	223.87M	235.00M	249.00M	153.56M	129.61M	85.91M
Net Income	-45.23M	-21.00M	29.63M	-7.17M	-1.32M	7.92M
Balance Sheet
Total Assets	3.97B	3.96B	3.82B	3.04B	2.11B	1.78B
Cash, Cash Equivalents and Short-Term Investments	235.00M	391.00M	318.55M	383.56M	302.20M	226.40M
Total Debt	2.36B	2.26B	1.86B	1.31B	1.03B	834.42M
Total Liabilities	2.86B	2.79B	2.43B	1.70B	1.38B	1.08B
Stockholders Equity	1.01B	1.06B	1.26B	1.23B	671.80M	640.38M
Cash Flow
Free Cash Flow	-122.73M	-338.00M	-578.68M	-557.34M	-306.09M	-268.18M
Operating Cash Flow	149.41M	179.00M	115.50M	-13.93M	100.21M	58.38M
Investing Cash Flow	-398.72M	-440.00M	-682.11M	-536.39M	-300.56M	-316.50M
Financing Cash Flow	164.48M	329.00M	495.63M	614.22M	268.13M	202.20M

Voltalia Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VLTSA, the sentiment is Negative. The current price of 7.3 is below the 20-day moving average (MA) of 7.97, above the 50-day MA of 7.19, and below the 200-day MA of 7.57, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 5.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VLTSA.

Voltalia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELEC	―	€1.22B	7.84	―	6.23%	-12.83%	10.40%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SCHP	―	€587.37M	13.45	12.51%	1.58%	14.77%	33.13%
VLTSA	―	€990.88M	-22.03	-3.36%	―	1.76%	-234.79%
HDF	―	€63.81M	―	-13.87%	―	257.28%	-21.96%
LHYFE	―	€147.50M	―	―	―	209.99%	-16.49%

Voltalia Corporate Events

Voltalia’s Earnings Call: Growth Amid Challenges

Voltalia SA’s recent earnings call presented a mixed sentiment, highlighting the company’s strategic transformation plan aimed at self-financed growth and increasing capacity. Despite these positive strides, the company is grappling with profitability pressures, including reported losses and challenges with curtailment, alongside negative EBITDA from service activities. The outlook remains challenging as further losses are expected in the second half of 2025.